After completing studies from Heriot-Watt University in Edinburgh, Gareth Henry started a career specializing in private real estate and credit investment products.
He held many titles including Director of Strategic Solutions, Global Head of Investor Relations, and Head of International Investor Relations. Nearly 21 years, he gained experience working for Schroders, Fortress Investment Group, and Angelo, Gordon, & Company. With much expertise in investments, leadership, global markets, and portfolio management, he is now an author publishing informative and suggestive advice.
In an article authorship on November 7th, 2018, Gareth Henry informs investment readers about strategies in private equity and public ownership. Private equity, an alternative investment class comprises funds that directly invests into companies, such as startup and private. The fund holder, called a private equity firm invests in private companies and holds positions in stocks that’s publicly traded. Investors use the fund to make investments in emerging and new technology, acquisitions, and to increase working capital for meeting financial obligations. Gareth’s example of private equity is venturing capital to support new ideas of entities in its early establishment stage.
Gareth Henry has advice about the disadvantages of public ownership. One important issue is the costs associated with IP which can escalate over an 18-month period. It can cost $750,000 to do the IPO which he says half of private companies stop to go public instead. It’s an ongoing financial commitment to compliance, standards, and maintenance with an average cost over $5.4 million. In his authorship, he identified two of the largest private transactions dating back to 1988 and 2007.
The first transaction involved Kohlber, Kravis & Robert purchasing RJR Nabisco for $25.1 billion. Next, is an acquisition transaction for Kohlber, Kravis & Robert to gain ownership of TXU Energy. The total cost of the acquisition was $45 billion through partnerships with TPG Group and Goldman Sachs. The partnership comprises limited partners who share risks with 99 percent ownership and limited liability; and general partners who own one percent of shares and have full liability. Gareth Henry warns his readers to pay close attention to all statements of private offerings and read the fine print about management fees to reduce costs.